FOR IMMEDIATE RELEASE:
USANA's Third Quarter Earnings for 2011 Decline Over Previous Quarter - ARIIX to Blame?
Salt Lake City, Utah - October 26, 2011 - Net sales declined by $5,424,000 or 3.6% from the prior quarter. Earnings before income taxes declined $2,245,000 or 10.6% from the prior quarter. Several days ago I released a report showing many distributors leaving USANA to join ARIIX. Several of them were USANA's top distributors. I gave my prediction that associate levels will decline and as a result drop in overall earnings. Seems I was correct.
I'm not sure how USANA can keep a straight face while sending out a press release trying to make their third quarter earnings appear good. I predict this decline to continue due to ARIIX. Many of the USANA distributors that joined ARIIX did so during the third quarter and are still counted in USANA's active associate figures. As a result, active associates in the fourth quarter will likely continue to decline.
It's amazing that even after USANA's "
Crazy Cash Contest" where associates receive huge points for recruiting additional distributors and miniscule points for signing up preferred customers, USANA still managed to lose more associates than they can recruit. I've always said USANA's business opportunity is all about selling the dream to make money instead of retailing product to customers, and this contest simply backs up my claims.
I still believe USANA has been
violating China's laws by actively recruiting Chinese Nationals into their MLM business opportunity by encouraging them to open the account in Hong Kong. Mainland China has banned MLMs from operating within their country. Remember, Dave Wentz made the following statement last quarter "
We definitely have a number of people [Chinese Nationals] who are building in Hong Kong. We do not have a percentage or have a number that we could point to with any accuracy." And then Jim Bramble follows that up with "
Well if an individual does not have residency in Hong Kong and the ability to build in Hong Kong, then they can only build in China." So there is clearly something very sneaky going on and I believe analysts need to keep pressing USANA on this issue. I'm not sure how the SEC can continue to turn a blind eye by allowing USANA to continue breaking foreign laws.
The following are charts showing the Active Associate & Preferred Customer trends quarter by quarter. I believe they speak for themselves. The captions describe the result from Q2-2011 to Q3-2011
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| US Active Associates declined by 2000 or 4% |
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| US Preferred Customers declined by 2000 or 5% |
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| Canada Active Associates declined by 1000 or 4% |
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| Canada Preferred Customers remained flat |
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| Mexico Active Associates remained flat |
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| Mexico Preferred Customers remained flat |
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| SE Asia/Pacific Active Associates increased 4000 or 9% |
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| SE Asia/Pacific Preferred Customers increased 1000 or 17% |
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| Greater China Active Associates declined 9000 or 10% |
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| Greater China Preferred Customers declined 1000 or 12% |
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| N Asia Active Associates remain flat |
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| N Asia Preferred Customers remain flat |
The post above is partially true except you have left out at least 200 or more key distributors who have left in favor of Ariix. Many more Gold, Ruby and Diamonds have left, Apparantly remaining dormant until Ariix launches in January next year. Ariix is growing rapidly and may eventually surpass Usana's earnings in about 2-4 years
ReplyDeleteI have been reading your posts now for the past 5 months. Your content seems fairly accurate but you also seem to have access to content that an active associate would. Like for example, how could you possibly know Usana associates with the rank of Gold or above, received a notice about the senior level managements resignations to join Ariix the day before the public release unless you are an associate with a high ranking level. Also, how could you possibly know the Usana associate ID numbers for the diamonds, rubies, etc who defected to Ariix?
ReplyDeleteYou mention that your goal for writing this blog is to save people a lot of money from partnering with Usana. However, it seems very strange that someone would spend this amount of time in researching and anaylyzing data, and then updating these posts with that information just for the sake of trying to save someone else some money. I have a hard time believing you in this regard, even if in fact your family member lost a lot of money.
I personally used to be an associate and lost a lot of money as well. When I first left I certainly let people know the potential dangers in joining and still advise people against it today. But I couldn't possibly fathom spending the enormous amount of time you have spent in creating this blog, etc with nothing to gain from it.
You also claim that all MLM's operate under the same system of deceit and your reason for not having a similiar blog against others is that there are simply too many. Again, I am not believeing you on that either, you obviously have a personal vendetta against Usana, and I question your true motive for maintaining this blog forum. If you in fact blasted the other MLM companies, then you could say this forum is unbiased but this forum is entirely focused on USANA.
I am not at all questioning your content because as a former Usana associate, I know personally what you are saying here is for the most part true. However, Usana does make a quality product, an overly priced product for sure, but one that is still high quality. I know it is high quality because of the health benefits I have felt and because of the numerous awards they have won. The products are also listed in the physicians desk reference guide and obviously couldnt be unless they were what Usana states. I throw out the Comparative Guide awards because of the conflict of Macwilliams and the other professionals.
Usana has more attrition with it's associates than it does with it's customers. In my experiences, people who became customers remained customers for very long time. One simply has to look at the Apple Test for conclusive evidence that Usana's products work. I personally tested about a dozen other vitamins, and Usana's kept the apple alive the longest. It is very hard to dispute that. I still take the products and will for the rest of my life because there really isn't anything else as good.
I also disagree with you entirely about your content on big pharmaceutical and the FDA. This has absolutely nothing to do with USANA but big pharma and the FDA are ABSOLUTELY trying to get us sick so we go on medicine for ever, and then die. The side effects from medicines, including immunizations of infants is incredibly harmful.
So by all means continue making people aware of Usana, information is key. I just question your true motives for this forum, and it would be more beneficial if you expanding you MLM bashing to other MLM companies as well so it doesn't look like you have a personal vendetta against Usana.
In response to the previous poster,
ReplyDeleteI have a very good ability to research information on and off the internet. While it may seem that I have information that only distributors have access to, I assure you that I am no distributor. My intent is truly to reveal USANA's dirty little secrets and help potential prospective members have access to much more information regarding USANA's business opportunity than they would otherwise have prior to joining. I have no financial motive. I am not making money on the side by bad mouthing USANA. I'm really just sick and tired of people being taken advantage of by deceptive and greedy folks. I love capitalism, but USANA's business opportunity is simply fraud. I'm all for people making as much money as they can, but not by scamming others in some elaborate pyramid scheme.
I have written about other MLM company's in the past when I get side tracked into their discussions. But for the most part, I focus on USANA because I know every little detail about them and don't need to begin clouding my mind with the hundreds of other MLMs with their little details. In the end, I view all MLMs the same. The primary way for distributors to make money is by selling the opportunity instead of the product. Signing people up into their pyramid scheme.
You list the Physicians Desk Reference like USANA can be proud of being listed there. I had spoken with the authors of that book several years ago when USANA was claiming the PDR gave them [usana] credibility. However, they informed me that USANA simply paid to be listed in the PDR for drugs instead of the PDR for supplements. It was USANA's decision alone to list themselves "IN THE WRONG BOOK". USANA's products are not drugs, but simply food supplements. Thompson Healthcare played no part in the placement and there was no special criteria USANA products had to meet to be listed in the PDR for drugs. It is simply a paid advertisement. Most supplement manufacturers are not so naive or ignorant as to list their vitamins in the PDR for DRUGS. I'll blog about this point someday.
As for customers of USANA, the high dropout rates and the continual decline of their active preferred customers and active associates says a lot about committed customers. As for the apple test, I believe if you put the slice of apple in fruit juices, it have the same effect. Big deal. I believe I show an article on my blog about the dangers of over antioxidizing yourself. While only a study, it shows that cells need free radicals so bad cells can die off. Getting rid of all the free radicals can potentially allow bad cells to linger around longer. There is also evidence that tumors grow larger when over antioxidized as well.
I disagree with you regarding the FDA and Big Pharma wanting to keep us sick and die, but I do believe that the FDA/Government is trying to make us "dependent" on drugs and government sponsored healthcare. As far as Pharmaceutical companies wanting to keep us sick and kill us is quite the conspiracy theory that I do not buy into at all.
Sorry I do not bring other MLMs into the discussion here. I intended on including others on my other website www.mlmpyramid.com but I have not been very active with that site. Perhaps one day I will, but I have hardly any time to look at USANA.
Thanks for the feedback! Have a good weekend
Dear Usana Watchdog,
ReplyDeleteI wrote in the previous post and wanted to add a couple more comments. I definitely applaud your efforts and thank you for making people aware of the potential dangers of joining Usana.
I did a substantial amount of research on the company and must say I did not know Usana simply pays money to be in PDR guide. That is very disturbing and really hurts their credibility. It gives as much credibility as just being on the Nasdaq which is not much.
I would really like to see the study on "over intakes of antioxidants." Not because I don't believe you but because I do take a lot of supplements and want to look out for my health. If you could please provide a link to that study that would be greatly appreciated.
I would have loved to turn back time and asked the question that you proposed in one of your older posts in "how much money have you earned from customers compared to how much money have you earned from signing up new associates. (maybe not verbatim, but similiar) That is the Golden question that anyone even thinking about joining Usana or any other mlm should ask.
What I found very alarming, and was actually the final nail in the coffin for my Usana business, was when I saw all these high level distributors and Ray Strand jumping ship to join Ariix. If anyone has ever attended Usana's international convention (aka: Usana's biggest payday, nothing like selling their products to 10,000 associates at one time), they always tell you how Usana's comp plan is the best, that they have the best products, and they live and dream Dr. Went'z vision. etc etc
Well if Usana was the best of the best, with the most lucrative comp plan, and the best products, then why on Earth would diamond directors (who make millions of passive residual income) emeralds, rubies etc jump ship to a new MLM company who hasnt even launched yet, and with products that essentially are genetic brand vitamins with Ariix just slapping a fancy label on it claiming it is the best. Just didn't make sense. Even Ray Strand, a doctor, (and Usana distributor) who has spent years speaking on behalf of Usana, just decide to switch. The answer is obviously simple, Usana is not what they claim to be.
I also agree with you that Usana is in financial trouble. Once Ariix launches, even more Usana associates will defect and take their organizations with them. Which will really hurt Usana. The only thing truly keeping Usana afloat is their global operations in Asia. The numbers here in USA are only declining, the market is saturated, and the products are very expensive.
For anyone even thinking about joining Usana, I sincerely hope they read your blog because your content is very helpful and very accurate. I commend you for taking the time to continue to update this blog. I don't know how you get some of your information but however you get it, the info is extremely valuable and will save a potential Usana associate hundreds of dollars and enormous amount of time.
Hope you have a nice weekend too.
To the anonymous above, I'm glad to read that after Usana Watchdog educated you with evidence that your Usana brainwashed statements are false, you came to your senses.
ReplyDeleteYou wouldn't believe how many Usana reps will argue back even if the proof is right in front of their face.
Welcome to the bright side.
So I received an email from Usana announcing a special 3 day holiday sale from Nov 21 - Nov 23. I was initially excited thinking I was going to save some money on some vitamins that I already take.
ReplyDeleteI log into my account, click on the Product Specials and what a MAJOR disappointment! They should have changed the slogan from Holiday sale to garage sale as all the items in the sale are old merchandise that they are trying to get rid of. The only two potentially attractive products were the kids vitamins and the joint vitamins but when you do the math, you really only save a few bucks and you have to buy in bulk so it really isn't worth it.
You would think when a company supposedly as big and credible as USANA announces a special holiday sale, they would actually include products you would want, and would offer real discounts on products that are regularly way overpriced to make them now more affordable. Instead they are just pawning off leftovers from convention.
This whole company makes me want to vomit. I can't believe I am still actually a preferred customer paying premium prices through the roof for their products. This holiday sale is anything but a holiday sale, don't be fooled.
In response to the anonymous poster regarding USANA's Holiday Special:
ReplyDeleteWhat you are referring to is this: http://obs.usana.com/UPLOADS/usana/2011/319/319-1_DAA.html
This is USANA's 3 Day special. I picked one out of the listing. USANA's Rev3 deal.
USANA normally would sell their Rev3 Energy (12 Cans) for $29.95 and the Rev3 Energy Surge Pack (14 sticks) for $29.95 as well. The Sales Volume you would receive is 16 and 25 respectively.
On their Holiday special, one of the deals is a combined pack of 12 cans of rev with the 14 sticks all for $49.95. That is a 17% savings. However, the sales points you receive is only 30, which is a 27% decline.
Nickel and Dime. But hey, at least USANA knows how to move product. From manufacturing to the distributors, from the distributors to their own cabinets, garage, trash and sometimes EBAY.
Speaking of, if you are a Preferred Customer, you might be interested to know that many distributors dump their USANA inventory loading onto EBAY at half their cost. Now THAT'S a Holiday Special!
I've done some research on this since one of my friends joined up. He's listed as a Diamond Director after a couple of years working for USANA. We had a debate about whether USANA is a pyramid scheme or not last year actually.
ReplyDeleteAll the arguments he posed to me only reinforced that this is a pyramid scheme and the evidence is freely available online. Sure he's made a lot of money now, but its distasteful that its made through downlines making minimal if any money.
A lot of people have used the fallacious argument that even if only 3% of people make decent/any money in USANA, this is pretty much the same as percentages in industries everywhere. Sure, the upper management of any company will always be paid more than the common workers. HOWEVER, the big difference is that if you work for a non-MLM company, you are paid at least a base salary, whereas working with USANA is almost entirely based on how many people you can persuade (scam) to join up.
USANA distributors may argue that they then help their downlines become profitable, however its just an endless chain of scamming, and eventually there will be people who sign up but cannot find anyone to sell their product to(in the rare occasion that this actually happens) or sell the empty dream to. This is likely also a factor in their third quarter downturn, as has been mentioned a few times, the market is saturated, and perhaps sites like these are beginning to educate people to stop joining up. Another probable factor is that people are beginning to learn that counter vitamins are easier to buy without needing to subscribe and be nagged to buy more. And this will eventually flow onto to people losing motivation to become distributors and hopefully sometime soon USANA will no longer be able to blatantly exploit their lowest denominators.
I give you props on not joining even when you have an actual friend who's making a killing with the business. That's how most people are lured into the business, the potential money.
ReplyDeleteYour comparison is flawed or unfair however. Being part of an MLM company is a lot closer to being a salesperson than being a salaried worker. In sales, you can make more than your manager and other folks above you. At least with most sales jobs, you're selling products that actually have a demand at the price point you're selling it for. With Usana, this just isn't the case if you don't count distributors as customers.
The mlm industry is a very mysterious business. Obviously there is money to be made, mostly at the expense of your downline who never really makes any money, but a select few people can earn a substantial amount of money.
ReplyDeleteSo just how do these diamond directors do it? How are they able to get people to buy into the business and continue to get people to buy into the business when most everyone by now knows that almost 9 out of every 10 associates will never make any money? Even worse, of those 1 out of 10 people to endure, only 1-2% of those will ever make any real money.
Associates spend hours upon hours working very hard to build a business and fighting the revolving door of attrition that never closes. I have spoken to some diamond directors and they have told me that they only focus on sponsoring new associates because that is where the money really is.
So think about it. You could enroll a new customer on the Essentials, Usana's multivitamin. You as the associate receives 32 points on a product the customer pays approximately $50 for before shipping. You don't make any money on that sale yet USANA keeps all the profits. Or you could sign up a new associate who has to purchase an enrollment pack, and most of them choose the Entreprenuer Pack. As the associate who enrolled the new associate with the Entreprenuer pack, you receive over 500 points, while the new associate had to pay approximately $750.
So you can either spin your wheels trying to enroll new preferred customers and make very little if any money. Or you could sign up new associates and receive 20X as many volume points. And oh by the way, that new associate is forced to spend at least $100 a month just to keep their business active, which means you as the sponsoring associate receive at least 100 more points on a monthly basis from your new associate until that new associate realizes at much time and losing lots of money that this business really isnt working and stops.
Meanwhile, the associate who signs you up is still actively signing up other associates and receiving a truck load of volume points that lead into bigger paychecks. So the only people really making any money are those fortunate few who are able to continuously sign up new associates, not customers.
Even worse for us people living in the US. If you have ever attended Usana international convention, you can not help but notice that almost all the accolades are being given to associates with Asian decent. For every 10 rank advancements, and or awards, maybe 1 will be a non Asian. What this highlights is that the bulk of Usana's business growth is occuring outside of the US.
Whether it is attributable to people's work ethics, various cultures being open to supplements and mlm more than the US, or not, Usana is not growing here in America.
Most of the people I have seen actually building a successful Usana business, are doing so in Asia not here in the US. If you follow the stories on facebook, other social media sites etc. Most of the people growing their business are in Asia or working with their business partners in Asia. For anyone here in the US with non Asian heritage, the message is simple, you are at a huge disadvantage.
We live in one of the most technological advanced countries in the world. Yet we are the most obese, and sick countries too. Diabetes, heart disease, cancers etc are exploding due to poor diet, and life styles. Even with all of this, people still will not purchase Usana's vitamins because of how much they cost.
Usana may not be a true pyramid scheme but the sad fact is most people will lost a lot of money. In this day in age where people are desparate to escape the corporate world, keep looking because Usana is not the answer.
to "mysterious mlm"
ReplyDeleteThe MLM is not a business. It is a pyramid scheme in which the focus is on signing up new distributors. It is not about the product.
Usana has multiple scams going. The product scam,the own your own business scam, and finally the stock market scam.
You have pointed out the product scam in your post. The product is overpriced and is very hard to sell. The profit margins are very low.
All the commission goes to the up line. The person who scammed you. Usana has made misleading claims about their products. Just read the label. They use junk science.
The over priced products are the tokens in a pyramid scheme. All MLMs are run this way.
Usana runs the company for the insiders and not the stockholders. The company recently paid 60 million dollars for a company that was loosing money. They are reporting this overpayment as an asset on their balance sheet.
To Usana Watchdog,
ReplyDeleteNothing like reading a blog like this filled with resentment. If Usana is such a bad company than why are so many people taking the products and working the business? Sure it takes work, and time. But if people join Usana looking for a quick buck then they are sadly mistaken. The products are not cheap however when you compare the prices to other 5 star rated companies like True Star, Usana's prices are better. You can't sell your health to the lowest bidder.
I have also noticed you haven't had any updates for a couple of months. Nothing more to rip Usana for vs's the other MLM's? Usana has had some pretty interesting announcements as of late, and one would have assumed you would be chomping at the bits to bash them with a new post.
I am sure there are bad Usana reps just like there are bad employers, bosses, and Ceo's in every other company. Those reps give the industry as a whole a bad name. But I challenge you to offer an alternative solution for people looking for financial freedom, and/or to generate a business for themselves without having to spend a fortune to start, and to escape the corporate world.
The hard reality is most people fail in Usana and other MLM's because they either treat Usana as hobby opposed to a business, or they just quit to soon. I have heard people say the they don't have any more prospects, that products cost too much, that business is too hard etc. For those folks the lesson is to focus on your weak points and master them.
If you have nobody left to talk to, create a new network or pick up the phone etc. If you are not a good salesman, then self develop those skills. Usana is no different then any other business. If you want to be successful, then you and you alone control your success.
I am not trying to recruit anyone by any means, but this blog is a perfect place for quiters. Hate to be so blunt but if you really want something, winners make it happen.
I couldn't agree with more than the person above me. This blog sounds like someone who tried USANA for a year and quit because you had no one in your downline and you wasted a lot of money.
ReplyDeleteBecome a prosumer. If you purchase 100 point of autoship that you use every single month than you are actually not spending anything on this business monthly. USANA offers health products not weird products we have never seen before and scared to take them for ourselves.
You can make a lot of money in this business but unless you are genuinely trying to promote true health and financial freedom no one would want to be apart of your team.
For the smart individuals who read this blog made up of an insecure little boy and think nothing of it whether they are apart of USANA or any other MLM company I applause you for not joining the lower ranks of the idiocy of this world.
As for the owner of this blog, yes you do have the right to free speech. But voice your opinions at a protest to protect pandas from being hunted. At least what your saying there will make a difference.
I find it funny that the 2 previous anonymouses talk like they actually know more than Watchdog. Did you 2 even read the posts on this blog? If you want a debate, point out what is written in the posts that you think is false.
ReplyDeleteAll I'm hearing from you 2 are rehash comments from over Usana reps that have commented on this blog. Nothing original to say? I don't blame you though because ever since you joined Usana, you've become more and more like your upline. The words you say are no longer your own.
As for the "people fail because they didn't try hard enough" type of comments, you could say that with just about any scams out there. In a real pyramid scheme, you could still make lots of money if you try hard enough. Go back to school kids.
In response to your colorful comment above. I was the first commentor about people quiting too soon. I have read the blog, and have read all the posts going back for long time. The watch dog is reporting information from personal knowledge, consisting of a lot of confidential info like associate numbers, and having access to secret notices to gold directors or higher, and information filed on the companies financial statements.
ReplyDeleteI did not disagree that the products weren't expensive. I did not disagree that the business isn't hard, time consuming, and takes real consistent effort. You are right in one regard, nothing original to say because there is no magic secret to Usana or any other MLM.
Successful Usana reps and other people in MLM, have become successful because of their incredible work ethics and great communication skills repeated over and over again over long period of time.
Usana is a business, and just like any other new business, most businesses fail in the first two years. The difference is that Usana has a unique element to it and that people can work it at home, on their own time, around their schedules. So this by itself makes it that much harder with the lack of structure. So the real question to those reps who have not had success is, how consistent are you in working the business. Not just going through the motions, but actually working the business.
Look at some of the successful leaders in Usana. Other than a few lucky associates, most of the people have reached there ranks thanks to honest hard work. Have you ever spoken to them? Have you ever devoted as much consistent time and effort into building your business as they have? Aaron Ding has been rejected over 9,000 times. 9,000 times. That is the kind of commitment and determination that is needed to succeed. How many times have you been rejected before you quit?
I really despise comments about USANA being a pyramind scheme, or the products too expensive, or whatever other laundry list of excuses you want to come up with. It is the classic victim card. If your business is not working, blame everything else but yourself.
Usana is a real challenge, no question about it. There is no quick buck or easy sale and just because it is hard does not make it a pyramid scheme. There are real tangible products that actually consumers and associates can purchase.
The people not trying hard enough is a fact of life and has nothing to do with something being a scam. It also is not reserved just for Usana. Using your own logic against you, so that means everyone who works hard at work will get rewarded right? Wrong. How many people don't get the promotions they deserve or the raises they deserve. Only to see the people who are better at playing the political kiss up game get the rewards.
Usana is by no means the perfect business. If you are so smart then why you don't you provide the audience with the perfect solution for people looking to start a business and don't have a lot of money, that has a residual income component (which by the way is always the hardest to generate in the beginning, just ask life insurance sales agents), and has very low risk. Since we need to go back to school as you put it, why don't you enlighten us?
This forum, is a great place for people who have tried Usana and failed and to find a reason to blame their failures on other than themselves. Yes it really is that simple, it may not be original, but that is the sad fact.
Case in point, an associate of mine, has spent over 2 years self developing and applying these skills. 2 years! During this time, he really didn't see any results in his business. But after such devotion to self developing and refusing to quit, he is really starting to reap the rewards, and his business is growing exponentially. It also is not just from sponsoring new associates. He is selling a ton of weight loss kits and helping several people lose weight. Where is the pyramid scheme in that?
This logic guys is something else.
So anonymous, before I give you my response, just out of curiosity, what was this Ding guy trying to do that got him over 9,000 rejections and over what time period? I ask because that number isn't impressive until you know what he was trying to do. You seem to be impressed just based on some number.
ReplyDeleteBeggers out on the street get rejected hundreds of times a day, so easily over 50,000 in a year. Telemarketers can easily surpass 10,000 rejections in a year. Yet, they go out and try again the next day. Do you look up to them too?
I respect anyone who has the tenacity and determination to succeed in tackling obstacles, and making every effort to accomplishing their goals in life. Whether it takes 9,000 rejections, 50,0000 rejections, the number is not what really matters. What matters is people's refusal to quit whether it is MLM or anything else. Just out of curiousity, how many rejections did you get with your MLM business?
ReplyDeleteI personally don't really care for or need your responses. You clearly do not exude the qualities of leadership one should aspire to and if your Usana business or other MLM business did not succeed, it is pretty obvious why. Who would want to follow you?
For anyone reading this blog and trying to decide if Usana or MLM is right for you, do your homework. This blog is one side of the story. I have challenged the watch dog and Logic to offer an alternative solution for the average person looking to make more money with another low cost business, with little risk etc and they have not been able to come up with an alternative solution. (This does not mean that Usana is the only solution by the way, but with the way these two people who bash the industry and the company so much, you would think they would have something more intelligent to offer besides "Usana sucks" type stuff)
These people have obviously had an unfortunate experience with Usana or MLM. The lack of success could be with the training or lack of training they received and the big question also pertains to work ethics.
Usana and other MLM's are not easy. They will take time. Figure it will take at least 2 years of consistent work to build a solid foundation. Some people will have a faster road to success but otherwise there are no shortcuts. The business is not for everyone, and you will need to be able to face a lot of rejections and have the will power to keep pressing on.
This is not the Usana or MLM koolaid, but don't let the negative people on this blog or in life steal you of your dreams. If you want something, go get it and find the means to get you there. Don't let this blog or this Logic guy stop you.
As for this blog, this is my last post. This blog is great for negativity and failures. Clearly my presence here is not welcomed nor justified because I want to enjoy life, want to be healthy enough to enjoy life for a very long time, and be able to have the time to enjoy it. Usana is the perfect business for me, and I can easily justify the hard work it takes to build a Usana business each time I look at my family.
Watchdog, you do a good job obtaining your information and sharing it on this blog. The information is good in that it paints a picture of some of the challenges involved in building an mlm business. Mlm is a challenge no question about that. It must take a lot of time for you to do this blog. Just imagine if you used the time it takes you to maintain this blog on more productive and prosperous things.....
JC
To this is my last post.
ReplyDeleteUsana and other MLMs are not business. They are pyramid schemes. They are not legal in China, Canada or the United States. They are selling false dreams. The products of these visions are encapsulated lake mud, glacial melt, waste products from olive oil production, and ordinary dirt. They all have magical properties and are bathed in pseudo science.
Criminal activities that make money can hardly be classified as hard work. They refer to their customers as marks, pigeons and fish. Hard work is not cheating people. You are selling a system where the odds are more than 99 to 1.
You sell a phoney business opportunity to all your friends. This activity is fraudulent. How can you sleep at night? No sane person will believe your baloney. 80% to 90% of your customers drop out the first year.
If you build a business based on lies, like a house of cards, it will come tumbling down. The best you can hope for is not getting jail time.
Glad to see you go! I don't like professional crooks. I will not let you legitimize MLMs and criminal activity.
@JC - Don't worry, I'll answer your silly challenge, but first, the reason I asked about the 9,000 rejections is that it seems to me like an exaggerated story to make oneself seem bigger. You still haven't answered my question, what was he trying to do that got him 9,000 rejections? Or was it just some rumor you heard and automatically believed without question?
ReplyDeleteI'm not in MLM but how many rejections have I had? Plenty my friend. Ask anyone who's been in sales, we've all had plenty. If you guys were actually out there selling products to people, then I wouldn't have questioned that 9,000 number. But you don't. Also, if asked exactly how many rejections I've had, I wouldn't be able to tell you because I've lost count and don't keep track of something like that anyway. My bet is that Ding's 9,000 number is a fabrication unless if he's had a sales background. Does he? If so, sorry.
On with the challenge. Are you ready to be educated and have your mind opened up and then blown to pieces? Here is "an alternative solution for the average person looking to make more money with another low cost business, with little risk etc"
... an online business. Low cost, residual income, no recruiting, unlimited potential, don't have to listen to anyone, don't have to make up fake titles when someone asks what you do, no need to continually defend yourself because no one will be calling you a scammer unless if you're scammer. In fact, you can start one for under $20 a month. Is that good enough for you? Is your mind totally blown by a concept that millions of people already know about?
Get out of your MLM world and open your eyes a bit kid. You'd be surprised what can find.
About your comment on failure and how people who fail only have themselves to blame: so you're saying if you play a game designed for the majority to fail and you fail, you have no one to blame but yourself? okay.
Your associate may make some money selling weight loss kits but he makes more from recruiting. People here didn't just learn about Usana, we know how the game works so don't waste time with product sales talk.
... continued...
ReplyDeleteNone of your arguments are ever going to shut naysayers up because those arguments have no foundation to sit on. If I were in Usana, here's what I would say to shut naysayers up: Read and learn kid.
"I'm in the business of recruiting. I understand that the reason behind the need to recruit is because that's how most of the products are sold due to so little demand for my product at the current price level in the public marketplace.
I recruit to put people into a system that requires them to make a minimum purchase each month regardless of how much of the product they actually want or use.
I recruit due to the fact that I can't make a living selling these products without attaching a dream to it. Why? Because I'm not good enough of a salesperson to sell expensive vitamins. In fact, very few people above or below me in my organization are because when we were asked to join, there were no qualifications necessary, all we needed to join was money.
I understand that because this is a business of recruiting, someone, somewhere in the organization has to recruit. At no point can there be no new recruits coming in, otherwise, the people at the bottom will eventually drop out since they're not making any money which will cause a ripple effect back up and collapse the whole system.
I know all of this but I still want to be part of this recruiting business because I want to make lots of money.
When I recruit people, I tell them exactly why I recruited them (to buy the products) and why they need to do what I did and recruit others (to make money and avoid system collapse). I am honest to my people and tell them how the business really works and why the monthly requirement is needed to keep this business alive. Everything is out in the open. Everyone on my team follows the same business conduct.
So Watchdog, although I understand everything you're pointing out, I still choose to be in this business because I was told network marketing is the best possible business ever and I fully believe that even though I haven't done much research into other alternatives. I hope you agree with how I conduct my business.
Thanks."
I'd like to know how Watch Dog would respond to something like this.
@ Logic:
ReplyDeleteI'm not Watch Dog, but I want to give some two cents about the matter:
"I understand that the reason behind the need to recruit is because that's how most of the products are sold due to so little demand for my product at the current price level in the public marketplace."
So with this statement, he means that the product is not really as good as the associates say. How can a product with excellent quality have a low demand? The Essentials and all those supplements are already in the market for more or less than a decade, but until now, majority of its sales comes from the "autoship" system. iPods, iPhones and iPads are not really needed but they continue to sell for themselves.
I also hear a lot of people saying "This brand is expensive, which can compare to Mercedez-Benz, Gucci, Louis Vuitton" or the like. The brands mentioned made their name by selling themselves with quality over the decades -- deserving these brand names a high price for their products. If USANA can really go to the same level as the brands mentioned, then the product should be able to sell for itself, and not only thru autoship!
"I recruit due to the fact that I can't make a living selling these products without attaching a dream to it. Why? Because I'm not good enough of a salesperson to sell expensive vitamins. In fact, very few people above or below me in my organization are because when we were asked to join, there were no qualifications necessary, all we needed to join was money."
If I were to ask this person, I'll say, "How were you able to 'sell' the business opportunity if you're a poor salesperson?"
It's just plain laziness.
"I understand that because this is a business of recruiting, someone, somewhere in the organization has to recruit. At no point can there be no new recruits coming in, otherwise, the people at the bottom will eventually drop out since they're not making any money which will cause a ripple effect back up and collapse the whole system.
....
I am honest to my people and tell them how the business really works and why the monthly requirement is needed to keep this business alive. Everything is out in the open. Everyone on my team follows the same business conduct."
So this statement merely says that USANA is a pyramid scheme with the products used as a front. The people at the bottom have no choice but to lose money or leave, and their direct uplines have to recruit and recruit more people who will eventually lose money.
Don't compare this to a traditional business model; people at the bottom still earn something though the top execs earn a lot -- but the top execs didn't just earn this position by magic, and if the top execs didn't do the job well, the business will fall. Everyone knows that.
The MLM business model is used to make the product more available to everyone. Giving everyone an opportunity to make money is another one, but without the former, it's just greed.
"How can a product with excellent quality have a low demand?"
ReplyDeleteApple decides to sell their Ipad for $5,000 each. There's your answer. Have you not looked at the numbers Watchdog posted? How many products were you able to sell to regular customers without trying to recruit them? Why is it that you can find Usana products on Ebay for nearly half the cost? There CAN be good demand for Usana products, just not at its current price.
"If I were to ask this person, I'll say, "How were you able to 'sell' the business opportunity if you're a poor salesperson?"
Exactly my point. You're focused on selling the business, not the products.
"Don't compare this to a traditional business model; people at the bottom still earn something though the top execs earn a lot"
Really? The very bottom people earn something? From where? How? Since you already stated that it's about selling the business, how do the bottom people make money if they don't recruit? If they don't recruit, they don't make money and if they don't make money, they will pull out which causes the person above them to now lose points resulting in no earnings and because of this, they eventually pull out as well, and so on.
Do you really think that recruiting can completely stop for even a few months without panic and big drops in earnings?
By the way, keep your two cents and give it to one of the bottom people, it'll be more than they're likely to earn anyway.
Me = Poster before you who wants to give the two cents to the person who gave the quoted statement. I'd like to clarify myself though; I'm not an associate, and never will be. ^_^;;;
ReplyDelete-------------------
"Apple decides to sell their Ipad for $5,000 each. There's your answer. Have you not looked at the numbers Watchdog posted? How many products were you able to sell to regular customers without trying to recruit them? Why is it that you can find Usana products on Ebay for nearly half the cost? There CAN be good demand for Usana products, just not at its current price."
My point being. These associates shouldn't level USANA to those branded products; these branded products can still sell despite those high prices.
----------------
"Really? The very bottom people earn something? From where? How? Since you already stated that it's about selling the business, how do the bottom people make money if they don't recruit? If they don't recruit, they don't make money and if they don't make money, they will pull out which causes the person above them to now lose points resulting in no earnings and because of this, they eventually pull out as well, and so on."
Erm... I'm referring to the traditional business. Those at the bottom -- the janitors, the clerks, the messengers -- they can still earn, though not as much as the top execs, unlike USANA or any other MLMs out there in which the bottom people lose their money.
-------------------
"By the way, keep your two cents and give it to one of the bottom people, it'll be more than they're likely to earn anyway."
Funny enough, I've seen a lot of these associates quit their jobs, seeing that they will earn more if they concentrate their time in USANA. Well, maybe, they can earn more -- but if I am in their shoes, my conscience can't bear snatching the money at those people below me.
Ah well. Maybe I didn't deliver clearly.
to the one that said, "When I recruit people, I tell them exactly why I recruited them (to buy the products) and why they need to do what I did and recruit others (to make money and avoid system collapse)"
ReplyDeleteThen you must've had many rejections, and you're about to fail. How do you even start the convo? Hi, yea im in MLM usana selling vitamins hoping to attain my goal in life working with TONS of business partners who are helping me. I just need a nominal fee of $1,400 and every 28 days $100 not a month, because usana is smart and you will have to pay $1300 a year not $1200. I hope you will succeed too ! so you will have to do what I'm doing.
RIGHT...if anyone heard that they'd think you're stupid.
&& to the one who said this "aaron ding guy who got rejected however many times"
I believe you are new. First because you got his name wrong. But i can see how g & h r close together, but if you were in the business long enough you'd worship him so much you wouldn't dare to spell it wrong. I have friends under his NEX or what not.
The statement I wrote above might be the worse sales pitch ever but hey, at least it's honest.
ReplyDeleteIn most other types of businesses, the customer understands how the company makes money, product sales. With MLM, many new distributors (the product purchasers) don't realize their friend recruited them to buy the products and to recruit others to, again, buy the products. They probably say things like "It's not about recruiting because it's binary so all you need is 2 people, that's it." Sure, you yourself only have to recruit 2 great people but the point is recruiting as a whole must occur or the company fails.
I got "Ding" from the Usana rep I was responding to. I guess he doesn't worship this Dinh fella. And seriously? Worship? Sure sounds like a cult.
I was dragged to a USANA meeting last night and I literally witnessed first hand how they try to brainwash you. The guest speakers told us that Warren Buffet listed USANA as one of the three companies you should invest in and that it was on Forbes. Yet when I got on Forbes, the article was written by someone else who used Buffet's MODEL to come to that conclusion. There is a big difference between using Buffet's model and having Buffet actually say the words himself.
ReplyDeleteI think this whole Buffet thing is irrelevant. Sure Buffet owns MLM companies but Buffer is an INVESTOR. He buys companies he knows will make money. He doesn't care if people working there isn't making anything. As long as the company can reap profits, then he can reap profits.
As for all the demonstrations and experiments they try to do, they even told us it was done by USANA people. Way to be unbiased guys.
And this Dinh guy, he is filthy rich. He drives a Mercedes SL, a Lambo, and a Land Rover. I know because people at the meeting last night talked about him all the time and he is really active in the Bay Area (where I live). The reason why he made so much money off USANA (and this is MY OPINION) is probably because he was one of the earlier people to join. The early people would have a much better chance of "making it big" than the people who join now.
And finally, I believe that USANA's expansion is a negative thing. I think they're expanding because they are losing markets. If everyone in the US was using their products and continually buys them, they wouldn't need to expand so aggressively. It's sad to see people like Manny Pacquiao using USANA and scamming Filipinos. Asia is a vast market and USANA would make a lot of money there.
@mingsquared - Can you point me to where I can read information on Buffett owning MLM stocks?
ReplyDeleteAs for Dinh, my bet is that his success isn't based on getting in early. Usana has been around since the mid 90's. I'm sure he started much later than that. His success is most likely based on developing a following. The 1st car could've been mostly financed some other way which helps to attract more recruits and in turn makes him enough money to actually buy more expensive toys which only deepens the worship that many of these people have for him according to one of the posters above. According to the stats, most of his worshippers don't make much money.
As for Usana's expansion, you're wrong. Even if current customers are continually buying the products, the new people coming into the business will still need to recruit in order to make money. Recruiting must ALWAYS go on. MLM companies that go under do so because recruiting stopped for whatever reason.
@Logic
ReplyDeleteI can't seem to find any either. Strange, I'm sure USANA speakers said Buffett owned at least 15 MLM companies. I wonder what's going on here?
Either way, IF Buffett owned any MLM companies, it still doesn't mean that network marketing is a good business. Buffett makes money off of the companies, using Buffett to justify making money from selling their products is a straw man.
As for USANA's expansion, I took a look at their SEC filings (which is available on Yahoo) and sure enough, their North American market is stagnating. However they are growing big in Asia, which leads me to believe that USANA is being kept alive by their Asia and Australia market.
@mingsquared - The reason I asked is because MLM are notorious for spreading lies. It's not that most distributors intentionally do it though. Most of them hear the rumor from their upline who heard it from theirs and so on and spread it without ever questioning it. They take anything their uplines say as fact.
ReplyDeleteThere was this one myth about Donald Trump appearing on some talk show stating if he had lost everything and wanted to make millions again, he would join a network marketing company. Even though there's no proof of this ever happening, it doesn't stop MLMers from spreading the rumors.
As for Trump, he would get back into real estate. If he were to get involved in MLM, he would start one, not join one. Actually, he did, but it was recently, way later than the talk show rumor.
There is one trump endorsing but you don't have stupid monthly quota
ReplyDeleteWas curious how The Trump Network was doing and found out that it was sold and Donald Trump removed any associations with the company.
Deletehttp://www.businessforhome.org/2012/03/the-trump-network-is-dead/
You say he's endorsing an MLM, which must be different than the one he had his name branded to, that doesn't require monthly purchases... which company is that?